Cloud Computing's Silver Lining For The ChannelCloud Computing's Silver Lining For The Channel

Part 1 of a two-part blog: Hey, VARsafraid that cloud computing might leave you in the dust? It's not likely -- as long as you're open to the possibility of tweaking your mindset, and possibly your business model.The "new" mindset isn't actually all that new. Channel experts and advisors have been encouraging VARs to move from product sales to solution and services selling for quite some time now. Cloud computing is just another impetus for change. Of course, the shift is a little more involved than that. VARs moving into the cloud may have to give up some upfront revenue as well -- namely, the money tied to hardware/software deployment and maintenance. But according to experts, the long-term benefits will likely outweigh the costs. Laurie McCabe, partner at SMB Group, a market research firm based in Northborough, Mass., says the annuity revenue associated with cloud computing is appealing, and that VARs will have an opportunity to get more involved in "higher-value business consulting instead of routine IT and maintenance tasks."

Of course, solution providers aren't the only ones wary of the cloud. A recent survey sponsored by Verio revealed that almost three-quarters of SMBs don't know more about cloud computing now than they did a year ago. And according to a Spiceworks report published in April, 63% of SMB IT professionals don't have any plans to use cloud-computing solutions in the next six months. The reasons cited for their reluctance: the technology is unproven (24%), they have security concerns (20%), and they need better performance SLAs (12%). Spiceworks says the biggest growth in cloud computing will take place among companies with fewer than 20 employees.

The key for an SMB, McCabe says, is not to get distracted by the market jargon and to choose cloud-computing solutions with only your business goals in mind. "There are so many cloud apps out there. How do you narrow it down?" she says. "I think a good first step is to take a look at the vendors you partner with already and see who they're teaming up with in the cloud space. Work with what you've got and you save on integration costs as well."

This is where the solution provider comes in. For SMBs, technology partners can become trusted advisors and consultants. "VARs can help businesses see the trade-offs between running an app in-house or in the cloud. They can help businesses pick an appropriate vendor for their needs, and they can integrate hosted and in-house solutions," McCabe says. "Ultimately, they can help their customers sort through the chaos."

Read my blog tomorrow for Part 2: Tips For Tapping The Cloud.

Don't Miss:
The Cloud Storage Bandwagon Gets More Crowded
Calculate Benefits Of Cloud Computing
When Should SMBs Use Cloud Storage?
Six Cloud Computing Benefits For SMBs

Michele Pepe-Warren was an editor and reporter for CRN and VARBusiness and has 10 years of experience covering the technology channel.